- Grayscale’s Bitcoin Trust (GBTC) product rose almost 80% in June amid BlackRock’s application to the US Securities and Exchange Commission (SEC) for an Exchange Traded Fund (ETF).
- The trade volume of Grayscale Bitcoin Trust increased to $45 million, sustaining its position as the most traded Trust product.
The Grayscale Bitcoin Trust is a financial vehicle that helps investors to carry out trade practices more efficiently. The Trust enables investors to trade shares in Trusts sustaining large pools of Bitcoin offering a wide range of products including Litecoin, Bitcoin cash, tracking Ethereum, etc.
GBTC experienced increased trade volume in June and the major credit goes to asset manager BlockRock’s application to the SEC.
A $45 million increase is measured in the trade volume in June, adding GBTC to maintain a strong position in the Crypto market, stated CCData.
In partnership with Coinbase, BlackRock applied for a spot in the Bitcoin ETF and got approval from the SEC. The main purpose behind the application is to attract more and more people to the crypto market as well as to help individuals experience financial well-being. Bringing economic opportunities to more people and developing a financially stable world encouraged BlackRock to apply for spot Bitcoin ETF.
“The upsurge in GBTC’s trade volumes and market share will result in growing positive sentiments towards the digital assets”, stated CCData. The involvement of high-profile institutions like WisdomTree and BlackRock to file for ETFs increased the position of digital assets in the financial sector.
Comparison of GBTC trade volume
The performance of GBTC is significantly outstanding in terms of trading volume. The trading volume of GBTC rose from $35.6 million in September 2023 to $45 million in June 2023, reflecting 80% of the overall trade volume. The total trading volume of the Trust in September was approximately 50.9%.
In June, ETHE’s volume declined from $31 million to $14.4 million and from 44.4% to 23.6% in terms of market share.
It is expected that filing for a spot Bitcoin ETF will enhance the chances for GBTC to transform its Trust into an ETF. GBTC’s share price surged to a one-year high on 27 June 2023. The Trust closed at $19.47 on Tuesday, achieving 7.1% through the day.
According to TradeView Data, this is the highest closing price of GBTC since last June.
“The discount on the GBTC’s share price dropped to 30%”, stated CoinDesk calculations. Also, the price of Bitcoin is expected to rise from $30,600 to $31,000 in the crypto market, with the crypto trading back to $30,500 at press time.
Investors are betting on GBTC as BlackRock applied for a spot Bitcoin ETF, with the hope that GBTC could convert and remove the discount.
Fidelity Investment on the other side is unable to confirm or share any update related to the ETF. The company applied for a spot in the Bitcoin ETF in 2021 and got rejected by the USSEC in 2022.
Conclusion
Application of BlackRock for a spot Bitcoin ETF played a major role in boosting the trade volume and positioning of GBTC in the crypto market. The interest of investors towards Trust’s products increased in recent years, resulting in a $45 million trade volume in June 2023. It is assumed that the filing for a spot Bitcoin ETF will bring opportunities for GBTC to transform its Trust into an ETF.
